CHICAGO--(BUSINESS WIRE)--Fitch Ratings has published a new Dashboard Report examining U.S. property/casualty (P/C) insurers' borrowing activity from the Federal Home Loan Bank (FHLB) system.
The U.S. P/C Insurers FHLB Borrowing Dashboard discusses the recent growth in borrowings from the P/C sector, although use of the FHLB system has been more popular with life insurers. Membership in the FHLB system can enhance liquidity and financial flexibility, particularly for members with limited access to the capital markets. P/C sector members are typically mutual companies or have relatively small policyholders' surplus (PHS), although there are exceptions.
FHLB borrowings by P/C insurers grew almost 64% to $1.7 billion at Dec. 31, 2013. The report highlights the P/C sector insurance groups with outstanding loans. The ratio of borrowings to PHS for this group averages 7.3%.
The report also looks at capacity for additional borrowings, pledged collateral and pledged collateral to invested assets, which remains manageable at 3.8% for the companies included in the report.
The 'U.S. P/C Insurers FHLB Borrowing Dashboard' is available on Fitch's website at 'www.fitchratings.com' or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. P/C Insurers FHLB Borrowing Dashboard